Aer Lingus: AGM Statement
18-Jun-2010 Aer Lingus Group plc (“Aer Lingus”' or the “Group”) is hosting its Annual General Meeting (“AGM”) at 2.00pm in Dublin today. At the AGM, Aer Lingus Chairman, Colm Barrington, made the following comments on current trading conditions:
"As stated in our interim management statement issued on 4th May 2010, the first quarter of 2010 represented a positive start to the year for Aer Lingus. Despite a 10.3% reduction in capacity compared to the prior year, revenues in the first quarter of 2010 declined by just 1.8% year-on-year. Operating costs fell by 13.3% reflecting a decline in fuel costs and the positive impact of the Group's continuing cost reduction programme. This performance delivered an operating loss of €37.8 million for the first three months of 2010, which compares to an operating loss of €74.8 million in the first quarter of 2009.
We are pleased to report that, in April and May 2010, Aer Lingus continued to trade ahead of the same period in 2009. This performance reflects the benefits of a disciplined approach to yield management and a continuing focus on cost reduction. The enhancement of our network though our extended code-share with United Airlines and the launch of the Aer Lingus Regional franchise as well as lower fuel costs year-on-year also contributed. Aer Lingus' load factors in this two month period have increased compared to prior year and the Group's focus on yield maximization continues to drive improvements in unit revenue performance.
This trading performance in April and May was achieved despite the closure of Northern European airspace on several occasions due to concerns relating to volcanic ash. As a consequence, Aer Lingus did not operate all of its scheduled flights on a total of 18 days in April and May 2010.
We are satisfied with the forward booking profile for our long haul operations for the forthcoming months. While we currently see a modest decrease in the short haul booking profile for the summer months, compared to 2009, Aer Lingus continues to generate higher yields in its short haul operation compared to last year.
Aer Lingus' liquidity position remains extremely robust and the Group has the balance sheet strength to sustain any continuing challenges in the current operating environment. We are encouraged by the Group's trading performance in the first five months of the year, however, given the broader economic environment it is appropriate to remain cautious on the Group's 2010 full year performance.
Aer Lingus will provide a further trading update with the release of results for the first six months of 2010 on 24 August 2010."